Statoil Submits PDO for Snorre Expansion Project

Statoil has, on behalf of the Snorre Unit partners, submitted the plan for development and operation (PDO) of the Snorre Expansion Project to the authorities. At the same time, contracts worth up to NOK 9 billion will be awarded.

The investment will increase recovery from the Snorre field by close to 200 million barrels.
“Snorre Expansion has been a marginal project, and Statoil has worked closely with partners and suppliers to realise it. We have finally arrived at a good concept utilising existing infrastructure and reducing costs,” says Margareth Øvrum, executive vice president for Technology, Projects and Drilling.

“In 2017, we have benefitted from a comprehensive improvement effort by Statoil and suppliers, and we have succeeded in realising development plans for Njord, Bauge, Johan Castberg and now Snorre Expansion, leading to investments of NOK 90 billion on the Norwegian continental shelf (NCS) and important activity for the industry,” says Øvrum.

“During the past years, Norwegian suppliers have demonstrated both a will and ability to change. Due to enhanced competitiveness, Norwegian industry plays a key role also in the Snorre Expansion project. We estimate that 80 percent of the investments will include companies in Norway. Competitiveness has a short shelf-life however, and it is vital that the improvement work continues with unabated strength,” says Øvrum.

Based on analyses from Agenda Kaupang, around 23,000 man-years will be carried out in Norway in the Snorre Expansion Project phase.

Snorre Expansion plans to start production in 2021, and will be operated and maintained by the existing Snorre organisation in Stavanger, while supplies will still be handled by Fjordbase in Florø.

Partners in the Snorre field are: Statoil Petroleum AS (33.27%), Petoro AS (30%), ExxonMobil Exploration and Production Norway AS (17.44%), Idemitsu Petroleum Norge AS (9.6%), DEA Norge AS (8.57%) and Point Resources AS (1.1%).

MAJOR SPIN-OFFS FOR NORWEGIAN SUPPLIER INDUSTRY
Statoil has submitted four plans for development and operation in 2017: Njord and Bauge in the Norwegian Sea, Johan Castberg in the Barents Sea and now Snorre Expansion Project in the North Sea.

Total investment costs are around NOK 90 billion

FACTS - PLAN
24 new wells, 12 for production and 12 for injection
A total of six new subsea templates for production and alternating water/gas injection

Pipelines and umbilicals between the subsea templates and Snorre A

Upgrading of Snorre A for reception of production from the subsea templates and for supplying injection water and gas to the subsea templates

FACTS - FIELD
The Snorre field was discovered in 1979 and production started in 1992

Snorre is a giant in the North Sea, and one of the fields with the largest remaining reserves in Statoil’s portfolio of oil producing fields on the Norwegian continental shelf

Expected production when PDO was submitted was 750 million barrels of oil. So far, the Snorre field has produced 1.4 billion barrels of oil

Planned field recovery rate is currently 46 percent. The rate is expected to rise to 51 percent following the Snorre Expansion Project

The field is located in the Tampen area in the northern part of the North Sea
Water depth is 300 – 380 metres

Snorre field life was originally expected to last until 2011–2014. It is now expected to produce beyond 2040